UPS set for billion dollar expansion in Europe

United Parcel Service (UPS) looks set to invest €1bn in its European business in order to expand its package delivery network.
The unconfirmed UPS plan, reported by German magazine Wirtschaftswoche, comes less than a week after arch US parcel rival FedEx said it was going to buy Europe’s TNT Express for $4.8bn, subject to regulatory approvals.
"We will strongly expand our network in Germany and the rest of Europe," the magazine quoted UPS Germany chief Frank Sportolari as saying, adding that the number of parcel shops and sorting centres would rise with the investment.
Sportolari said that UPS "has lost time" after its own attempt in 2013 to take over TNT was blocked by European regulators due to concerns it would restrict competition.
TNT Express’ European ground delivery network is seen as a key attraction for US-based FedEx, which will have to dispose of the Dutch operator’s freighter airline due to European Commission rules on majority foreign ownership of European Union airlines.
TNT chief executive Tex Gunning anticipated that the European road network created by the FedEx takeover “would be the envy of the industry.”
FedEx has already identified potential purchasers of TNT Express’ air operations, says FedEx chief executive David Bronczek.
The reduced operational overlap between FedEx and TNT Express was reflected in last week’s bid of €8 per share, compared with the €9.50 that UPS had been prepared to offer.

Share this story

Related Topics

Latest business news

New partnership aims to create SriLankan Airlines cargo feeder network

MMAG Aviation Consortium (MAC) will establish an air cargo feeder network to support SriLankan Airlines’ cargo operations if an investment…

Read More

Share this story

Logistics trio acquire freight software business

The Cardinal Partnership, Davies Turner and Woodland Group have created a holdings company and purchased UK-based freight software company Forward…

Read More

Share this story

Worsening box line disruption to have limited air cargo impact

Disruption to container shipping operations out of Asia has unexpectedly worsened over recent weeks but the development is expected to…

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.